Crown Estate to pay Treasury more than £400m after offshore wind boost
The company, which owns the seabed around the UK, said it made £442.6 million in net revenue profit in the year to the end of March.
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Your support makes all the difference.The Crown Estate is to pay even more money to the Treasury after benefiting from a massive licensing round for offshore wind power last year.
The company, which owns the seabed around the UK, said it made £442.6 million in net revenue profit in the year to the end of March, money that will go to help the public finances.
The sum was nearly £130 million more than the year before, mainly due to the fees that companies pay to be allowed to build wind farms off the coast.
Chief executive Dan Labbad said: “Our enhanced revenue from the Round 4 offshore wind leasing programme reflects the immense amount of groundbreaking work we have undertaken over the past two decades, working in partnership across many sectors, to create a world-leading offshore wind market.
“We are now focused on how we continue to maintain the UK’s position as a global leader, including supporting other technologies, the supply chain, skills and jobs, all of which are vital to a net zero and energy secure future.”
By working in partnership and remaining steadfast in our commitment to deliver, we are confident the Crown Estate can continue to enhance its contribution for the benefit of the nation, its finances and its future
In January, the Crown Estate signed new agreements for six offshore wind farms which will be able to power around seven million homes at their peak.
This will contribute around £1 billion per year to the Crown Estate, and adds to the UK’s rapidly growing offshore wind industry.
There is currently around 10.8 gigawatts of offshore wind power installed in Crown Estate waters, enough for around 11 million homes, and more is being built all the time.
Last year the value of the Crown Estate’s marine portfolio, which mainly consists of offshore wind farms, reached £5.7 billion, an increase of 14% from the year before.
It is still not quite as valuable as the company’s portfolio of London real estate, which decreased in value by 6.5% to £7.2 billion during the year. But wind power is becoming an increasingly big part of the company’s portfolio.
Mr Labbad added: “We are also laying the foundations for our long-term impact by seeking to address areas of national interest such as nature recovery, economic renewal and regeneration, the future of sustainable agriculture, and helping to secure London’s position as a world-class city.
“While we have set out an ambitious strategy, we are not complacent about the challenges ahead.
“By working in partnership and remaining steadfast in our commitment to deliver, we are confident the Crown Estate can continue to enhance its contribution for the benefit of the nation, its finances and its future.”